Difference between a Bill of Exchange and a Cheque

Difference between a Bill of Exchange and a Cheque 12th Commerce Unit - - . . AM Sl. No. Basic of Difference Cheque Promissory Note . Nature of order A cheque contains an order to pay money A promissory note contains an undertaking to pay money. . No. of Parties There are three parties in a cheque – drawer, drawee and payee In a promissory note there are only two parties – the maker and the payee. . Creator of the instrument The drawer of a cheque is a creditor The maker of a note is a debtor . Identity of the parties to instrument The drawer and the drawee can be one and same person This cannot be so in a promissory note . Payableness A cheque is always payable on demand A promissory note, on the other hand is payable either on demand or after a specified period. . Crossing A cheque can be crossed A pronote cannot be crossed . Stamping A cheque need not be stamped A promissory note has to be sufficiently stamped . Discounting A cheque cannot be discounted A promissory note can be discounted with a banker . Grace Period No days of grace are allowed for payment of a cheque Three days of grace are allowed for calculating the due date of promissory note . Bearer A cheque is payable to order or to bearer A promissory note cannot be made payable to bearer